FBM KLCI edges up; UUE soars 170% on ACE Market debut

KUALA LUMPUR: The FBM KLCI edged up in early trade on Tuesday, supported by ongoing buying interest in select blue-chip stocks, in line with the overnight gains on Wall Street.

Overnight, the Dow Jones Industrial Average rose 0.13% to 39,169.52, the S&P 500 gained 0.27% to 5,475.09 and the Nasdaq Composite gained 0.83% to 17,879.30.

At 9.21, the market bellwether rose 3.75 points, or 0.23% to 1,601.95. It opened 0.38 of a point higher at 1,598.58 earlier.

ACE Market debutant, UUE rose 41 sen, or 170.83% to 65 sen with 131 million shares traded.

United Plantations gained 20 sen to RM24.96, Ajinomoto added 20 sen to RM15.64 and Vitrox rose 18 sen to RM4.27.

Among the decliners, Dutch Lady slid 36 sen to RM36.04, PETRONAS Dagangan fell 16 sen to RM17.26, LPI lost 14 sen to RM12.42 and Hong Leong Bank declined 12 sen to RM19.24.

Apex Securities reckons that with global developments showing signs of improvement, positive sentiment may also trickle down to stocks across Bursa Malaysia.

“For now, the local bourse may attempt to take a jab towards the 1,600 points, while the lower liners may continue to capitalise onto the positive sentiment. Investors will be keeping a close tab on Federal Reserve Chairman Jerome Powell’s speech later tonight which may provide a hint over an imminent rate cut.

“Sector-wise, we reckon the energy sector may advance along with the higher oil prices on improved summer demand and extension of production cut till end-2025. Also, the improved performance on Nasdaq overnight may potentially transpire to stronger trading interest within the technology sector,” Apex said.

Meanwhile, Inter-Pacific Research said the renewed buying interest yesterday, albeit mild, is helping to shore up market confidence again, which could help the key index to usher in a firm start to 3Q2024.

Even so, it said conditions are still largely unsettled due to the few available catalysts to provide firmer market impetuses.

“Although we see further near-term gains that will help the FBM KLCI to sustain its recovery from the recent stockmarket selldown, the gains may also be modest with the 1,600 level possibly serving as a key hurdle for now, as it could still require firmer follow-through buying interest for the level to be cleared convincingly.

“Consequently, we think the key index may loiter within the 1,590 and the 1,600 level for the time being with the other support and resistance levels set at 1,595 and 1,605 points respectively,” Inter-Pacific said.